Chapter 5 Scenario questions

. Adam, Ben, Cora, Dasa, and Ed together purchased a house in which to live during their undergraduate law degree. Which one of the following statements most accurately describes how the land is held at law?

At law, there can only be a tenancy in common so Adam, Ben, Cora, Dasa, and Ed are all legal tenants in common.

At law, there can only be a joint tenancy. This means that Adam, Ben, Cora, Dasa, and Ed are legal joint tenants.

At law, there can only be a joint tenancy and there is a maximum of four legal owners so Adam, Ben, Cora, and Dasa, we assume to be the first named in the conveyance, are legal joint tenants.

At law, there can only be a tenancy in common and a maximum of four legal owners so Adam, Ben, Cora, and Dasa as the first named are legal joint tenants.

. Adam, Ben, Cora, Dasa, and Ed together purchased a house in which to live during their undergraduate law degree. Adam, Ben, Cora, and Dasa each contributed £50k to the purchase price. Ed contributed less: £30k. What is the significance of Ed's lesser contribution? Select one of the following.

Ed's lesser contribution means that he does not enjoy any equitable interest in the property.

Ed's lesser contribution may mean that, applying the presumption that equity presumes a tenancy in common where there is unequal contribution to the purchase price, the land is held under a tenancy in common in equity.

Ed's lesser contribution means that, applying the presumption that equity follows the law, the land will be held under a joint tenancy in equity.

Ed's lesser contribution is irrelevant in a case where friends come together to purchase property as all are taken as intending to share equally.

. Flora, Greg, Hetty, and Inga are joint tenants at law and in equity of a property they co-own. Flora, wanting to leave her 'share' in the property in a will for her godson, wishes to effect severance by written notice and seeks your advice. Which of the following most accurately describes how severance by written notice operates?

Severance by written notice under s. 36(2) of the LPA 1925 is a unilateral act and requires a particular, prescribed form of words to effect severance.

Severance by written notice under s. 36(2) of the LPA 1925 requires an effective notice of severance that is served on joint tenants that are present in the UK, of full age and capacity.

Severance by written notice under s. 36(2) of the LPA 1925 requires (1) an effective notice of severance that is (2) served on all other joint tenants demonstrating an immediate intention to sever: Harris.

Severance by written notice under s. 36(2) of the LPA 1925, in light of more defined modes of severance such as mutual course of dealing, has fallen from favour.

. Jarrod, Kylie, Li, and Martin are co-owners of a property purchased as an experimental 'communal living' space. Martin's contribution to the purchase price was secured by way of mortgage. Martin has defaulted on the mortgage payments and the bank now seeks a sale of the co-owned land to realize its debt. Which of the following most accurately reflects the legal position as regards the bank's application for sale?

The bank will apply under s. 14 of TOLATA 1996 and the court will consider the factors listed in s. 15 of TOLATA 1996 in determining whether a sale of the co-owned land should be ordered. Key considerations in this case will be: the purpose for which the trust was created, that this purpose is continuing, and not wanting to keep the bank waiting for its money.

The bank will apply under s. 14 of TOLATA 1996 and the court will consider the factors listed in s. 15 of TOLATA 1996 in determining whether a sale of the co-owned land should be ordered. Key considerations will be: that the original purpose for which the trust was created has come to an end and that a bank's interests should not override those of co-owners.

The bank will apply under s. 14 of TOLATA 1996 and the court will consider the factors listed in s. 335A of the Insolvency Act 1986 in determining whether a sale of the co-owned land should be ordered. Martin will point to the exceptional circumstances including the novelty of the 'communal living' project to resist sale.

The court will refuse to hear the bank's application as the co-owned land in this case was purchased to be a residential space and thus should not be affected by financial factors such as creditors' interests.

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